Liquid Network Hacked: 4,000 BTC Stolen, 3,400 Returned

The Liquid Network, a Bitcoin sidechain built by Blockstream, has been hit with a hack that led to the withdrawal of 4,000 BTC, valued at approximately $320 million. However, in an unexpected turn of events, an unidentified group behind the breach returned 3,400 of the stolen Bitcoins to Liquid's federation wallet.

According to Samson Mow, a former Blockstream chief strategy officer, the remaining 598 BTC worth around $47 million remains outstanding. The network has not resumed normal operations as it is still in the process of resolving a chain split and preparing for a safe restart.

The incident has raised concerns about the security measures in place on the Liquid Network. Blockstream and the federation members are working to address these issues, including completing additional security work, resolving the chain split, and establishing that L-BTC is fully backed before normal activity resumes.